ASSIGNMENT #2

SUBMITTED TO:

MR. Roktim Sarmah SIR

SUBMITTED BY:

Mandeep singh

SEC:RS1805

Reg no. 10801205

CRM STRATEGIES OF CAFÉ COFFEE DAY

We’re a division of India’s largest coffee conglomerate, the Amalgamated Bean Coffee Trading
Company Limited (ABCTCL). Popularly known as Coffee Day, it’s a Rs. 750 crore, ISO 9002
certified company. With Asia’s second-largest network of coffee estates (10,500 acres) and
11,000 small growers, Coffee Day has a rich and abundant source of coffee. This coffee goes all
over the world to clients across the USA, Europe and Japan, making us one of the top coffee
exporters in the country.

About Café Coffee Day

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at
Brigade Road in Bangalore. Today, more than a decade later, Café Coffee Day is the largest
organized retail café chain in India with cafes functioning in every nook and corner of the
country. Drawing inspiration from this overwhelming success, Café Coffee Day today has cafes
in Vienna, Austria and Karachi. What’s more, new cafes are planned across Middle East, Eastern
Europe, Eurasia, Egypt and South East Asia in the near future.

Our Divisions

• Coffee Day Fresh ‘n Ground.

• Coffee Day Xpress.
• Coffee Day Take Away
• Coffee Day Exports
• Coffee Day Perfect
1) Selling best coffee in india

2) Importance of marketing mix

3) Market research to know about your competitors

4) New tools & trends for business growth

5) Effective marketing in limited budget

6) Position and brand a company or product

7) Manage a product launch successfully

8) Assess growth opportunities and enter the correct market

segment

9) Use voice of the customer and whole product tools to

increase product value to customers

10) Create a value-based pricing strategy

Address price erosion situations

CRM STRATEGIES OF BARISTA

2.1 Product Quality

Starbucks’ trademark was the unique features of the coffee-based beverages. These innovative
drinks have attracted new customers to experience luxury coffee drinks at affordable prices, in a
very cozy environment. Starbucks created a coffee culture, educating its customers on the coffee
types, origins, and the roasting process, thus building brand credibility and gaining clients’ trust
in the brand and quality of products provided. Clark (2007, pg.201).

2.2 Consistency

Starbucks’ major coffee priority is the consistency of the product taste and quality assurance.
Starbucks whilst priding itself as the best quality coffee in the world tries to control much of the
supply chain for quality control and product assurance. Starbucks’ reliability and product
consistency is driven by the super-efficient coffee maker machines. Besides making the same
drink shot, it is noise-dampening, making sure the customer’s ‘experience’ is not disturbed by
the blenders’ noises. Beverly (2007, pg. 6, 104).

2.3 Customized and Seasonal Products

Starbucks’ brand name and popularity came through customizing the beverages to the
consumer’s desire through offering flexible drink options such as extra cream, caramel syrup etc.
Clark (2007, pg. 214). Starbucks also introduces various and new seasonal products to
differentiate themselves from its competitors and to capture new clients. The new drinks add to
the overall experience of loyal clienteles and this specialization increases its competitive edge
over other players in the market.

2.4 Convenience Through Location

Starbucks applied the first rule in opening a store i.e. a successful and strategic location, and for
thousands of its stores worldwide, credit should be given to their sharp foresight in store-site
strategy to reach its target customers and eliminating its competitors. Starbucks' store-site
strategy is to have high visibility, high traffic and convenient location (stores are located on the
driver side in USA or on corners, shopping malls, bar districts and populated business towers), so
a daily commuter will be delighted to stop everyday at the store for his Latte. The stores’ high
visibility, convenience and accessibility in terms of its locations and amenities provided (comfy
furniture, grand amount of seating, clean restrooms, etc) attracts attention and increases brand
recognition and reputation, thus diminishing customer defections and increasing the stores’
traffic and sales. Clark (2007, pg. 113, 116).

2.5 Strong Brand Equity

The unique earthly-colored walls of the each store, innovative product display and cozy
atmosphere, seasonal themes, promotions etc makes Starbucks a strong brand that allows for
brand recognition and consumer retention. In addition, Starbucks promotes the idea of supporting
the local communities by being a good neighbor, and aims to involve its partners in the decision
making process. The image of Starbucks sustaining local coffee farmers and helping in grooming
their crops builds the customer’s trust in the coffee bean superiority and Starbucks as a socially
responsible corporate brand looking after the long-term benefits of the local community with the
aim of growing together and not to exploit. (www.starbucks.com).

The store’s clean and hygienic image has added very much to the strong image of Starbucks; a
survey states that 83% of the sampled clientele rated a clean store as highly important, a
reputation which is equally important for Starbucks’ overall image. Beverly (2007, pg. 4).

2.6 Customer Bonds and Loyalty Programs

Starbucks recognized that one of the ways to obtain customer satisfaction is by manipulating
their perception of equity and fairness in gaining maximum return for their money and loyalty.
So, Starbucks introduced the Starbucks Loyalty Card which gives great benefits to its customers;
ranging from syrup and milk options on their drinks free of charge, complimentary coffee refills
and free beverage with whole bean purchases. The Starbucks Card or the Duetto Visa Card (a
reloadable prepaid card/Visa credit card) binds the customer whereby they feel that they are
gaining more value for their money, being treated fairly by Starbucks and feeling appreciated by
a better quality service in being a loyal and a regular client, thus preferring to stay devoted to the
brand and gaining further benefits with their future purchases. (www.starbucks.com).

Starbucks also created its own world culture by innovating new proprietary language for its
products, to the extent of publishing a booklet for such vocabulary for its clients. This syntax
enabled customers to choose the drink that suits them the most, thus creating a customization
bond with Starbucks’ beverages and products. The mastering of this language is essential for the
customer to get exactly what he wants, and since this lingo cannot be found out of Starbucks, it
will refrain the regulars from flocking to other coffee shops. Clark (2007, pg. 98). In addition to
the customization of the drinks, Starbucks’ interior store design was carefully studied and aimed
at reaching the human inner-soul, sending subliminal messages making the customer comfortable
and at ease in enjoying his ultimate coffee experience.

2.7 An Affordable Experience

Starbucks market entry and key success was in providing high-end quality coffee drinks at
affordable prices. This clever blend of unique quality drinks with a great ambiance and an
excellent service made their pricing reasonable and fair for millions. The customer satisfaction
on the overall package in exchange for the price paid is reflective in their patronage. Sustaining
their prices is essential for customer contentment and retention.

2.8 The Relationship with Customers

The Baristas (employees) of Starbucks are a critical factor since they interact directly with the
client. Starbucks’ strategy of creating a personalized service that is vital for the customer’s
satisfaction is pivotal in ensuring his loyalty; personalized services include personal greeting,
flexible changes to the drink/order and memorizing the favorite order of each customer, all with
a genuine smile and friendly spirit. Beverly (2007, pg. 4). The human touch and customer
intimacy is an essential element in the overall Starbucks experience by making each client feel
special and well looked after. This point clearly marks Starbucks’ acknowledgement of creating
relationships and having personal bonds with their clientele to deter them from changing stores.
Clark (2007, pg. 91).

3. Assessments & Recommendations

3.1 Employee Relations: An Assessment

Starbucks’ employee relations play an integral part in its customer retention strategies.
Disgruntled or unhappy employees will become a key stumbling block to any customer
relationship management strategy that the firm wants to put in place.

Clark (2007, pg. 228) in discussing employee relations states that

“…on a material level, Starbucks has long offered one of the nation’s (USA) most progressive
benefits plans for retail workers…” “…according to company spokespeople, Starbucks now pays
more each year to insure its employees (over $200 million) than it pays for its raw coffee beans.
This benevolence wins the company no end of praise in the business press — Starbucks is a
mainstay on Fortune’s annual “Best Companies to Work For” list — and it helps make
employees want to stick around as well. The average quick-serve eatery’s annual employee
turnover rate is 200 percent, yet Starbucks sees only 80 percent of its baristas leave the company
each year.”

Clark (2007, pg. 229) further elaborates that “Starbucks has enjoyed an employee-friendly public
image for decades, but that image is now beginning to lose some of its luster…” due to its rapid
expansion which has led it to lose focus on its core service delivery. “…According to dissatisfied
employees, the company’s hourly workers must deal with wildly inconsistent hours, low wages,
chronic understaffing, and glaring workplace health hazards. The job, they say, is becoming
more routinized and strictly controlled over time, making them feel like dispensable cogs in an
enormous corporate machine.”

Clark (2007, pg. 235) in discussing employee dissatisfaction mentions that

And when it comes to individuality, the chain would rather its employees refrain from expressing
it. Starbucks’s PartnerGuide focuses almost exclusively on telling workers what they can’t do...
Starbucks also advises its employees that it can search their belongings at any time, without prior
notice and even without them present. You are dispensable; the guide appears to be saying. Just
smile, take money, and push the right buttons.

Clark (2007, pg. 243) puts it down matter-of-factly by saying “…as long as the work remains so
unfulfilling, very few people will want to keep the job for long, no matter what Schultz says to
keep them inspired.”
3.2 Employee Relations: Recommendations

This is one crucial area where Starbucks is currently failing in and the writings are on the wall,
coming especially through customer feedback. In an industry where face-to-face interactions take
place a multitude of times daily around the world and is fundamentally the essence of its
business, this disconnect will eventually lead to the downfall of its global dominance in the
services-related retail coffee market.

Howard Behar, its one time international president, mentioned in The Economist magazine’s
print edition of May 28th 1998, that the quality of its front-line employees will play a pivotal role
in its overseas expansion drive. And now, that very employee-quality is at stake, and online
feedback (www.starbucks.com) cites disgruntled “baristas” making statements like “I don’t drink
coffee, in fact I hate coffee” and mentions about the declining attitudes of the employees in
customer relationship management and the very nature of the job itself.

To eradicate this problem, Starbucks needs to revamp its hiring, training and motivation
programs to deliver the “quality-employee” objective effectively. It needs to ensure that it hires,
trains, motivates and inspires employees that are amenable to its unique culture. Rigorous
assessments of this HR process need to be implemented to gauge its effectiveness, and
improvements made continously to ensure that the system gets entrenched into its organizational
fabric globally.

Also, performance measurements need to be put into place to further help develop employees
through coaching and feedback mechanisms as well as appraisal systems; this is to ensure that
the potential of each and every employee is realised to the fullest in the context of customer
relationship management.

It should also put in place an employee feedback process from the people who form the millions
of touch points with customers daily on a global basis – a bottom-up approach that will lend
valuable insights to the formulation of tactical and strategic objectives. This functional process
should be headed by the HR president together with a team of dedicated professionals from
marketing, operations as well as HR itself and it must lend credence by demonstrating that
feedback from the employees are being addressed by the company with the objective of
establishing a solid foundation in interaction marketing leading to a win-win situation for the
partners, the customers and the company.

3.3 Product Quality and Store Experience: An Assessment

Starbucks’ distinctive competence of its in-store ambience and innovative coffee drinks has
propelled it to the forefront among coffee retailers. What Starbucks stands for is not just a good
cup of coffee but also the passion it pours into its product quality and the “Starbucks
Experience.”

Coffee lovers in the new millenium are now honing in on quality, not quantity. Clark (2007, pg.
201) mentions that
And since café goers today are so finicky, coffee companies come up with ever-more
extravagant claims about the quality of their wares — everyone wants the consumer to see their
product as the finest gourmet indulgence available…At the top of the boasting heap sits
Starbucks, a company that spent decades cultivating its image of luxury and refinement. Its
beans, the Starbucks Web site tells us, are “the world’s best.”…The chain’s marketing
department is still as crafty as ever, but now, with forty million customers to please each week,
Starbucks is having a tougher time maintaining its reputation as a top-notch roaster.

Clark (2007, pg. 211) mentions that “There is one aesthetic judgment on which nearly all coffee
aficionados agree, however: as time goes by, it’s getting tougher to find decent coffee at a
Starbucks. But at this phase in the company’s evolution, superior coffee isn’t necessarily what
it’s aiming at. For Starbucks, quality has become mostly irrelevant.”

Clark (2007, pg. 212) further elaborates on product quality by stating that

Over its years of expansion, Starbucks has jettisoned many of the quality-control standards that
vaulted it to prominence in the first place. In the past, baristas crafted each espresso shot
personally… Today, machines pull the shots…According to Peet’s reasoning, the vastness of the
Starbucks empire makes it impossible to maintain the standards of times past.

And to top it all off, licensed stores at airports, book stores and such are notoriously bad at both
the drinks and the “Starbucks Experience” standards.

Online feedback at www.starbucks.com from one customer reads that “The licensed stores never
had a conception of the "heart" of the business to start with. They are exemplary of everything
that is wrong with current store operations.”

Clark (2007, pg. 265) goes on to elaborate that

But while Schultz has publicly stated nothing but certainty about his company’s current
direction, an internal memo leaked to Jim Romenesko’s Starbucks Gossip Web site in February
2007 tells a different story. In the message, titled “The Commoditization of the Starbucks
Experience” and addressed to a dozen high-ranking company executives, Schultz bluntly
assesses his chain’s fading cachet. “Over the past ten years,” he writes, “in order to achieve the
growth, development, and scale necessary to go from less than 1,000 stores to 13,000 stores and
beyond, we have had to make a series of decisions that, in retrospect, have lead to the watering
down of the Starbucks experience.” Among his many criticisms, Schultz laments the loss of
“romance and theater” with the new superautomatic espresso machines and complains that
Starbucks stores “no longer have the soul of the past,” admitting that they seem “sterile” and
“cookie cutter.” The antidote for these ailments, Schultz says in the memo, is a return to “the true
Starbucks experience” — something he still believes in with the same passion of twenty years
ago.

3.4 Product Quality and Store Experience: Recommendations

Mr. Schultz has hit the nail on the head with his statement of returning to the true Starbucks
experience. It has to be an enterprise-wide back-to-basics program that addresses service quality
issues evident in the product and the servicescape itself which have gone out of focus in the
heady need to expand its operations at such a frenetic pace.

But Starbucks has part of the solution already in place. In its current operations, Starbucks
collects personal information that can be used to identify an individual customer.

One of the ways Starbucks may use the personal information provided orally or in writing
(including via electronic media) by customers is by:

• responding and acting on their service inquiries;

• creating personalized promotions by combining the customers’ personal information with
non-personal information about them, such as the amounts and types of purchases they
make or any benefits they receive through Starbucks Cards Programs.

This information can be used in crafting and implementing a CRM strategy if the company does
not have one already in place. Due to the sheer size of its business, it is very unlikely that a
customer will be served by the same front-line staff on two consecutive visits. This is where
CRM comes into the picture to act as an enabler by providing, according to Lovelock and Wirtz
(2007, pg. 381), “…a unified customer interface that delivers customization and personalization.
This means that at each transaction, the relevant account details, knowledge of customer
preferences and past transactions or history of a service problem are at the fingertips of the
person serving the customer. This can lead to a vast service improvement and increased customer
value.”

Conclusion
In closing, the current ailments faced by Starbucks can be boiled down to one
distinct element – the lost of focus in its core service delivery due to its aggressive
drive to expand globally. And Mr. Schultz, its CEO since February 2009, in
recognizing this, has admitted that the antidote for this ailment and its
consequences is a return to the “true Starbucks experience”; which should be on
the corporate strategy roadmap immediately if the company is to get back to its
hey-days of a customer-centric business without delay.

Methods used for Acquisition of data in café coffee day

1) collection of primary data from the customers

2) questionnaire , personnel interview and email questionnaire

3) secondary data (online websites, newspaper and magazines

Methods used for Acquisition of data in barista
1) Personal meeting : they usually sent their workers or salesman to meet the customers to
know about the services .

2) Feedback forms: they also use feedback method to know their feedbacks and get the
information

3) Questionnaire:- they also fill their questionnaire to know about the people and the data and
to know their position in markets.

Filtering & Validation Methodologies

Café coffee day both have their own place in

market and barista has their own place in market
from my side both are doing good in market and
the way of collection in café coffee day is then
analyasis by the certain hypothiesis and in baristha
there are alos some different trends.
Privacy policy in café coffee day
Our Privacy Policy describes the types of information we gather online and in our Stores and how
we use this information. Please read this information carefully.

By accessing the Site and shopping in our Stores, you agree to be bound by the Privacy Policy.
This Privacy Policy may be updated from time to time. Accordingly, you should check the date of
this Policy (which appears at the top of this page) and review any changes since the last version.
If at any time you do not agree to the terms of this Privacy Policy, please do not use this Site and
refrain from purchasing from us.

Use of Information Collected by Us

café coffee day may collect two types of information about users: "Personal Information" (such as
name, email address, mailing address, phone number, credit card number and the items you
purchase) and "Aggregate Information" (such as information about how many users log on to our
Site on a daily basis or frequency of customer visits to Future Group Stores).

We use customer information in an effort to improve your shopping experience and to

communicate with you about our products, services, promotions and contests. We may also use
this information to make offers to you, to help us target specific products and services to you, and
to help us develop and improve our Site and Stores and tailor our Site and Stores to your interests
 Personal Information is collected online by us or our service providers (such as MindViz Tracker)
on our behalf when users voluntarily register. We may receive personal usage and demographic
information from our Stores and from third parties we work with including, for example,

In our Stores, Personal Information is collected from you in a number of ways, including the
following:

• When you apply for a credit card account through our Stores, we may also collect income,
employment information and credit information, such as credit cards owned by you, in addition to
identifying information, such as your name, address, telephone number(s), email address (es),
income and employment status.

• When you fill out a tailoring order or instruct us to mail product to another location, we may
collect your name, address, email address, telephone number and credit card information.

• When you fill out any in-store promotional surveys, we may gather certain Personal
Information, such as your opinions on specific products and/or services, in addition to identifying
information, such as your name, address, telephone number(s), email address (es), income and
employment status.

Privacy policy in barista

Acceptance of terms
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Conclusion
Analysis

Barista has a huge lead over Cafe Coffee Day when it

comes to the staff at the outlets. The staffs at Barista
perform extremelywell in terms of their Behaviour,
Manners and Service. Cafe Coffee Day can’t afford to
letBarista outperform them in this area, because it plays
a vital role in building anddeveloping their brand.

A customer’s visit to a cafe doesn’t end with his purchase

of coffee. He comes there for the service the organization
provides, and this service is provided directly by
thestaff.The most important aspect of interacting with
customers is the way an employee speaks to them. His
manners and behaviour should be polite and courteous.

Barista has an competitive advantage in terms of staff

(people